This High-Growth Stock Is About to Break Free
Industrial software company PTC (NASDAQ: PTC) is one of the most exciting growth stocks. It's a technology leader in the so-called "fourth industrial revolution," whereby manufacturing is revolutionized through digital web-based technology that analyzes, monitors, and optimizes performance. There's a feeling that PTC hasn't quite had the big blowout quarter yet to demonstrate the rapid adoption of its growth products. Was the recent second quarter enough to change opinion and get growth investors excited again? Here's the lowdown.
The key to the investment case for PTC rests on three interconnected drivers. First, the ongoing adoption of its core products, computer-aided design (CAD), and product lifecycle management (PLM), representing around 71% of current revenue. Second, management expects its growth products, the Internet of Things (IoT) and augmented reality (AR), to generate torrid growth rates in the future and take over the growth baton in time. The growth products represent around 14% of current revenue. Third, management is aggressively transitioning its core products (CAD and PLM) into cloud-based software-as-a-service (SaaS) offerings, called "velocity," which represent around 4% of current revenue.
Image source: Getty Images.
Source Fool.com
